GEORGE TOWN, Nov 2 — Budget 2019, with its focus on the low-income group (B40) and measures to become a fully developed nation, is a good first step for the Pakatan Harapan (PH) government, Penang Chinese Chamber Commerce (PCCC) vice president Datuk Finn Choong said.

He said there is an apparent shift to socialism and equality among Malaysians in the PH government’s first Budget.

"There is an emphasis on the B40, the elderly and women, it looks like a Budget for the future,” he said.

He said measures such as emphasis on the youth, first-time home buyers, introduction of peer-to-peer funding, cryptocurrency regulation and a focus on the digital industry were all visionary steps towards developed nation status.

"I see there is a possible shift in the economy with the privatisation and consolidation of government-linked corporations (GLCs) which is moving towards developed nation status,” he said.

He said first-world and developed countries have long privatised all GLCs and the Malaysian government’s move towards it is a good one.

"I am concerned that of the RM314.5 billion in expenditure, about 80 per cent is for salaries so the civil service is bloated,” he said.

He said in the future, the civil service should be reduced to cut down on the expenditure as tech advancements will mean improved efficiency without the need for an overly bloated civil service.

Federation of Malaysian Consumers Association senior vice-president K. Koris Atan also agreed with the focus of the Budget for the B40 group.

He welcomed the smoke-free regulation for all eateries and hoped that the government will increase taxes and cigarette prices to further deter people from smoking.

"We have conducted research that by increasing prices, it can reduce smoking,” he said.

He said the one-off payment for pensioners is insufficient and hoped the government will consider increasing the pension for all retirees to a standard RM825 per person.

"Some pensioners are getting only RM150 per month, which is not enough. They should get a minimum of RM825, so the government should make it standard,” he said.

On the housing sector, Fiabci Malaysia president Michael Geh said the definitive measures and actions to encourage home ownership for properties below RM500,000 and for first-time home buyers were commendable.

"The 10 per cent discount on existing residential properties by developers under the National Home Ownership Campaign is commendable, but the secondary market does not benefit from this situation,” he said.

He noted the introduction of property crowdfunding or peer-to-peer funding for first-time home buyers.

"Crowdfunding is a futuristic method, we will be the first few countries in this region to introduce this in the property sector,” he said.

As for the increase in Real Property Gains Tax on the disposal of real estate from 5 per cent to 10 per cent for international investors and to 5 per cent for Malaysians, Geh said it is a fair move.

"It will encourage property holdings for own usage on longer durations and slightly dampen speculative property purchases,” he said.

He said the increase in stamp duty from 3 per cent to 4 per cent for property transfers above RM1 million will have a minimal impact on the property sector.